Guan Eng predicts better year ahead with more projects, jobs

Updated 4 years ago · Published on 11 Jan 2020 12:30PM · 2 Comments

Finance Minister Lim Guan Eng says growth in 2020 is expected to be supported by major infrastructure projects such as the Pan-Borneo Highway, Light Rail Transit 3, Mass Rapid Transit 2, and East Coast Rail Link, worth a total RM120 billion, and the mega Bandar Malaysia project which has a gross development value of RM140billion. – The Malaysian Insight file pic, January 11, 2020.

THE Malaysian economy is expected to perform better in 2020 on the back of RM120 billion worth of infrastructure projects, a robust manufacturing purchasing managers’ index (PMI), and more employment opportunities, said Finance Minister Lim Guan Eng.

“In the first three quarters of 2019, the GDP expanded by 4.6% year-on-year,” he said in a statement.

Growth in 2020 is expected to be supported by major infrastructure projects such as the Pan-Borneo Highway, Light Rail Transit 3, Mass Rapid Transit 2, and East Coast Rail Link, worth a total RM120 billion, and the mega Bandar Malaysia project, which has a gross development value of RM140billion.

Through the RM6.5 billion Malaysia@Work programme, which offers incentives to employers to recruit local workers, the government hopes to provide 350,000 jobs for the youth, women and fresh graduates.

The RM450 million digital stimulus in the form of e-wallets with free spending money as another factor supportive of growth.

Malaysia recorded a 15-month high in the manufacturing purchasing PMI in December, according to data released by IHS Markit last week.

The headline manufacturing PMI, which is a composite single-figure indicator of manufacturing performance, rose to 50 in December from 49.5 in November.

Lim said the PMI growth was an indication that the domestic economy would grow at a faster rate in the coming months.

“The PMI is not the only indicator pointing towards a more sustained future expansion. The Department of Statistics Malaysia showed that the latest leading economic indicators expanded 1.4% to 120.3 points in October 2019 versus 118.6 points in the previous month. This is a significant improvement from the -0.4% and 0.3% increases in August and September, respectively.”

Citing the RAM business confidence index published this week, he said the trends in the report concurred with the PMI and Statistics Department data.

“Local rating agency RAM suggests that sentiment among Malaysia businesses is improving, with confidence among corporates rising 3.2 points to 56.4 in 1Q20-2Q20, relative to the 4Q19-1Q20 period. 

“At the same time, confidence among small and medium enterprises rose a point to 54.2, which is the highest level since the index began in 2017.”

Putrajaya has projected a GDP growth of 4.7% in 2019, and 4.8% in 2020.– January 11, 2020. 

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Comments

  • In 2019, Malaysias stock exchange was the only one in minus territory over the year. Others achieved 50% increases. So unless there is a real change in monetary policy, I dont see it. Why do Malaysians pay so much to lease/purchase a car? Typically in Europe the interest rate is around 3 - 5%. Why are mortgages so expensive? Again the rates in Europe are under 3%. Why is the cost of borrowing money so exorbitant in Malaysia when cheap money is so readily available in Europe and other leading economies? The Central Bank needs to be proactive in stimulating investment and cut interest rates. This will strengthen the Ringitt and make Malaysia more attractive to investors. Almost 2 years since PH took over, the Ringitt is still at the same low rate against the majority of currencies. This makes imports expensive and is keeping the cost of living high.

    Posted 4 years ago by Malaysia New hope · Reply

  • Bean counters do not understand growth

    Posted 4 years ago by Concerned Citizen · Reply